REG - RM PLC - Preliminary Results <Origin Href="QuoteRef">RM.L</Origin> - Part 2
02/02/2015 07:01
- Part 2: For the preceding part double click ID:nRSB6887Da
STATEMENT
for the year ended 30 November 2014
Year ended 30 November 2014 Year ended 30 November 2013
Note £000 £000
Profit before tax 15,757 9,435
Investment income 1,193 1,649
Finance costs (476) (730)
Profit from operations 16,474 10,354
Adjustments for:
Impairment of goodwill - 328
Amortisation of acquisition related intangible assets 303 195
Amortisation of other intangible assets 417 582
Depreciation and impairment of property, plant and equipment 3,415 3,919
Gain on sale of operations (429) (1,387)
Loss on disposals of other intangible assets 73 736
Gain on disposals of property, plant and equipment (398) (118)
(Gain)/loss on foreign exchange derivatives (83) 75
Share-based payment charge 932 507
Increase in provisions 1,339 7,777
Defined benefit pension scheme administration cost 13 475 391
Operating cash flows before movements in working capital 22,518 23,359
(Increase)/decrease in inventories (55) 4,238
Decrease in receivables 2,792 20,383
Decrease in payables:
- decrease in trade and other payables (708) (10,779)
- decrease in onerous lease and dilapidations provisions 11 (836) (1,331)
- decrease in employee-related restructuring provisions 11 (4,348) (1,155)
- decrease in other provisions 11 (289) (52)
Cash generated from operations 19,074 34,663
Defined benefit pension scheme cash contributions 13
- deficit catch-up payments and scheme expenses (3,821) (4,384)
- pension escrow account (8,000) -
Tax paid (2,527) (1,790)
Borrowing facilities arrangement and commitment fees (353) (451)
Interest paid - (20)
Income on sale of finance lease debt 55 289
Net cash inflow from operating activities 4,428 28,307
Investing activities
Interest received 403 441
Repayment of loans by third parties 33 -
Proceeds of sale of operations - 336
Proceeds on disposal of property, plant and equipment 661 420
Purchases of property, plant and equipment (2,597) (1,980)
Purchases of other intangible assets (1) (68)
Increase in short-term deposits 9 - (6,000)
Net cash used in investing activities (1,501) (6,851)
Financing activities
Dividends paid 7 (3,028) (2,834)
Special dividend paid 7 (14,678) -
(Repayment of)/net proceeds from vehicle finance leases (530) 771
Proceeds of share capital issue, net of share issue costs 22 -
Net cash used in financing activities (18,214) (2,063)
Net (decrease)/increase in cash and cash equivalents (15,287) 19,393
Cash and cash equivalents at the beginning of the year 57,169 37,823
Effect of foreign exchange rate changes 11 (47)
Cash and cash equivalents at the end of the year 9 41,893 57,169
1. Preliminary announcement
The preliminary results for the year ended 30 November 2014 have been prepared
in accordance with those International Accounting Standards (IAS) and
International Financial Reporting Standards (IFRS) issued by the International
Accounting Standards Board (IASB) and adopted for use in the EU and therefore
comply with Article 4 of the EU IAS Regulation applied in accordance with the
provisions of the Companies Act 2006. However, this announcement does not
contain sufficient information to comply with IFRS. The Group expects to
publish a full Strategic report, Directors' report and financial statements
which will be delivered before the Company's annual general meeting on 25
March 2015. The full Strategic report and Directors' report and financial
statements will be published on the Group's website at www.rmplc.com.
The financial information set out in this preliminary announcement does not
constitute the Group's statutory accounts for the year ended 30 November 2014.
Statutory accounts for 2013 have been delivered to the Registrar of Companies
and those for 2014 will be delivered following the Company's annual general
meeting. The auditor's reports on both the 2014 and 2013 accounts were
unqualified, did not draw attention to any matters by way of emphasis without
qualifying their report and did not contain statements under s498(2) or (3) of
the Companies Act 2006 or equivalent preceding legislation.
This Preliminary announcement was approved by the Board of Directors on 2
February 2015.
Consolidated income statement presentation
The Income Statement is presented in three columns. This presentation is
intended to give a better guide to business performance by separately
identifying the following adjustments to profit which are considered
exceptional in nature or with potential significant variability year on year
in non-cash items which might mask underlying trading performance: the
amortisation of acquisition related intangible assets; the impairment of
goodwill; the gain/loss on sale of operations; share-based payment charges;
restructuring costs; changes in the provision for onerous lease contracts; and
exceptional credit on settlement. The columns extend down the Income Statement
to allow the tax and earnings per share impacts of these transactions to be
disclosed. Equivalent material adjustments to profit arising in future years,
including increases in or reversals of items recorded, will be disclosed in a
consistent manner.
Basis of preparation
The financial statements have been prepared on the historical cost basis
except for certain financial instruments, share-based payments and pension
assets and liabilities which are measured at fair value. The preparation of
financial statements, in conformity with generally accepted accounting
principles, requires the use of estimates and assumptions that affect the
reported amounts of assets and liabilities and disclosure of contingent assets
and liabilities at the date of the financial statements and the reported
amounts of revenues and expenses during the reporting period. Although these
estimates are based on the Directors' best knowledge of current events and
actions, actual results ultimately may differ from those estimates.
Significant accounting policies
The accounting policies used for the preparation of this announcement have
been applied consistently.
2. Operating segments
The Group's business is supplying products, services and solutions to the UK
and international education markets.
The Group is structured into three operating divisions: RM Resources
(previously known as Education Resources), RM Results (previously Assessment
and Data Services) and RM Education (previously Education Technology).
A full description of each division, together with comments on its performance
and outlook, is given in the Strategic report.
This Segmental analysis shows the result and assets of these divisions.
Revenue is that earned by the Group from third parties.
Segmental results
RM RM RM Corporate Total
Year ended 30 November 2014 Resources Results Education Services
£000 £000 £000 £000 £000
Revenue:
UK 53,903 27,136 110,712 - 191,751
Europe 4,052 37 315 - 4,404
North America 994 - 206 - 1,200
Asia 2,980 119 - - 3,099
Rest of the world 875 535 680 - 2,090
62,804 27,827 111,913 - 202,544
Adjusted profit from operations 10,330 4,648 7,700 (4,152) 18,526
Investment income 476
Adjusted finance costs (924)
Adjusted profit before tax 18,078
Adjustments (see note 1) (2,321)
Profit before tax 15,757
RM RM RM Corporate Total
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